Look who is #1 on the take over target list:
Takeover targets: Ten miners to watch
Article Comments (5) STEVE LADURANTAYE
Globe and Mail Update
August 7, 2008 at 12:46 PM EDT
Higher commodity prices should be good news for Canada's small-cap resource companies, but a tight credit market has conspired with a weakening economy to drive the TSX Venture Exchange down 35 per cent so far this year.
"We've harped and harped on the lack of willing investors to provide capital to the juniors," Cannacord Adams wrote in this week's Junior Mining Weekly newsletter. "However, we believe it's only a matter of time until investors return to the junior mining sector."
That return may be under way, with a wave of consolidation washing over the gold sector. company companyid="181710" -->company companyid="162024" -->Kinross Gold Corp. has recently bid $1.2-billion for Aurelian, while Goldcorp Inc. [G-T]bid $1.5-billion for Gold Eagle.
"In both cases, Kinross and Goldcorp are taking advantage of a relatively strong period of stock appreciation and are using an equity component to fund at least part of the acquisition," the report says. "This tells us that, on a relative basis, the majors see value in the junior sector and that the discounted junior valuations represent an opportunity for value accretion through acquisition."
Andina Minerals
Axmin Inc
Barrick Gold Corp.
Capstone Mining
Corriente Resources
Creston Moly
Detour Gold
Hathor Exploration Limite
Orezone Resources
Rainy River Resources
Sherwood Copper
So who's next? Cannacord Adams prepared a list of companies that could be acquired — or do the acquiring — in the coming months.
Andina [ADM-X] Minerals Inc.
2007 earnings: $1.7-million
2007 revenue: $4.2-million
Assets: $62-million
Shares: Closed Wednesday at $3.16
An exploration company with five projects in Chile, Andina has an estimated 2.9 million ounces of gold in its portfolio. Its main holding is situated 120 kilometres east of Copiapo and close to other mining projects by companies such as Kinross, Yamana Gold, and Barrick Gold Corp. [ABX-T]
AXMIN [AXM-X] Inc. |
